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Markets show little reaction to appeal ruling

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US stocks up but off earlier highs

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Euro STOXX 600 index reverses rally, closes modestly lower

(Updates prices to afternoon)

By Stephen Culp, Rocky Swift and Ankur Banerjee

NEW YORK, May 29 (Reuters) - A U.S. appeals court

reinstated President Donald Trump's sweeping tariffs on

Thursday, leaving Wall Street with no clear direction a day

after most of the tariffs were blocked by a trade court, a move

that had given markets a brief boost.

Chaotic U.S. trade policy has sent global markets on a

roller coaster in recent months. Equity markets were rattled by

Trump's April 2 "Liberation Day" tariff announcements, which

have since been repeatedly delayed and adjusted.

Following a market revolt after the April 2 tariff shock,

Trump paused most import duties for 90 days and vowed to hammer

out bilateral deals with trade partners.

Markets have swung wildly through Trump's on-and-off tariff

changes. The S&P 500 index is up 4.1% since duties were

announced while European stocks have gained 2.0%.

Gold is up 5.9% from April 2, and the U.S. dollar

index is down 4.4%. Ten-year Treasury yields

have climbed 23 basis points to around 4.4%.

But U.S. stocks showed little reaction to the appeals

court decision, having already pulled back from the rally

sparked by Wednesday's trade court ruling.

Markets have grown accustomed to the president

announcing steep tariffs only to postpone them soon afterward,

giving rise to the acronym TACO (Trump Always Chickens Out),

coined by the Financial Times.

Asked on Wednesday by a reporter for his response to the

term TACO, Trump said the question was "nasty" and in his

defense of tariff changes, said: "It's called negotiation."

"Trump has already rolled back most of these tariffs anyway,

so these court rulings are just headlines," said Adam Sarhan,

chief executive of 50 Park Investments in New York.

"As far as I'm concerned, as long as the market doesn't tank

on the news, it's just a secondary byproduct," Sarhan added.

The Dow Jones Industrial Average rose 117.03 points,

or 0.28%, to 42,215.73, the S&P 500 gained 23.62 points,

or 0.40%, to 5,912.17, and the Nasdaq Composite gained

74.93 points, or 0.40%, to 19,175.87.